OT: How to Drown In Debt

[Wade Garrett]

I use several credit cards for day-to-day purchases-- purely for ease of financial management and record keeping. I pay all balances off each month-- so never get hit with the usurious interest banks charge folks who carry a balance.

This month, I used my Discover card for a big purchase and the statement total was $841 and change. But here's the kicker-- the minimum payment was $7.88. That's less than one percent of the amount owed!!

If you're impulsive, lack self-control, max-out your credit cards and carry a balance-- unless your name is Methuselah, you'll never even come close to breaking even. You will have paid more than your lifetime net worth in interest...

[invalid unparseable]

Google sez:

What is the average US credit card balance? On average, Americans carry $6,194 in credit card debt, according to the

2019 Experian Consumer Credit Review. And Alaskans have the highest credit card balance, on average $8,026.

From your Discover bill, it looks like mine for a heating oil purchase this month.

[Cindy Hamilton]

Yep. Those are the people who pay the cash back on my credit card.

[hubops]

No kidding ! It came to light for me a few months ago when I accidently applied the payment to the wrong MasterCard when doing my monthly online banking .. the 1-month interest on that modest balance < ~ $ 300. > was ~ $ 10. I can't imagine a max'd out card - month-after-month .. John T.

[Ed Pawlowski]

I was not impulsive but did have some cc debt and the interest. I used to get paid one a month. About a week before payday, I was thinking, I sure could use an extra $50 to get through the week. The mail came with the credit card bill. The interest was just what I was wishing I had. Best coincidence ever. Took a few months to get it all paid but have not paid a penny interest since.

[Snag]

Cutting up and paying off those few cards we had was the best decision we ever made . It started with my wife listening to Gordon Ramsey on her way home from work ... and I'm damn glad she did . It's an old concept that is no longer being taught called living within your means .

[Ralph Mowery]

I also use the cards for the cash back. Pay them off every month. Have not paid any intres for many years. Took out some cards just because they gave from $ 100 to $ 200 to me just to take them out and use them for so much money in 3 months or so.

When I go to a place for some items I ask if they give a discount for cash. If not I charge the item. If they do, I calculate the best way to go.

[Cindy Hamilton]

I've lived within (a little below, actually) my means for years while using credit cards for nearly every expense and getting the 1-3% cash back. Cutting up your credit cards is only the answer for people with no self-discipline.

I redeemed $200 in free money today.

[Ed Pawlowski]

I have about $400 just sitting. Not the best fiscal use to leave it. When I want something deserving and expensive I'll cash in. I got a really nice Napoleon grill, I bumped up a size when I got the TV, etc.

[Roger Blake]

I only use cash for day-to-day purchases. I see no reason to involve a 3rd party in local transactions.

[Jim Joyce]

Of my two main cards, one applies the cash back balance to the bill whenever that balance reaches $100 and the other card gives me 5% back at Amazon, where we place multiple orders every week. It's free money.

[Dean Hoffman]

I didn't get a credit card until I learned motels required them. That's maybe

40 years ago. They are sure handy for buying things around town, especially at the gas stations. The local chains require one to enter the card owner's zip code so that helps for security. There aren't many clerks left who actually know how to count change so things are a tad easier from that standpoint, too. I thought at first you had a joke in the text. Something like say "I do" at an alter.

[Cindy Hamilton]

Nice. I just apply mine to my bill. What a nerd.

[Thomas]

Gas station asked for zip when using my card. I thought how the f*ck would i know, i am in the middle of nowhere.

[Dean Hoffman]

There's a cure for that. A TV commercial for something called Tally just aired. Download it and your credit problems disappear forever. My parent's solution was simpler. Don't buy what you can't buy with cash. Exceptions for real estate or farm equipment.

[trader_4]

Your wife takes financial advice from a screaming celebrity chef?

[Ralph Mowery]

As mentioned I do. I can get from 1.5 to 5 % back on the credit cards. NOt sure about other cards, but the other day I got a notice I got about $ 200 back on one card last year.All for just putting the card through a slot.

[Ralph Mowery]

You should know what the zip code is where you live. That is what the pump is asking for. YOu should see the zip code on some of your mail. Not where the station is.

[Scott Lurndal]

That is incorrect.

The credit card terminal expects you to enter the zip code associated with the credit card billing address.

[Scott Lurndal]

If you don't pay off the balance, that % is well less than the interest on the balance, so the credit card company wins.

If you do pay off the balance, that % is offseting the higher prices you pay at the retailer to cover their credit card transaction processing fees.

The credit card company wins. You lose. Every time.